Alexandoy
VIP Contributor
It is a must to make a good estimate of the capitalization of an intended business. You have to make a layout of the regular expenses like rental of the business space, salaries of workers, equipment, etc. You multiply the total amount by 3 months and you get the estimated capital needed. My advice is to multiply the estimated amount not by 3 months but by 6 months. That means you are not expecting the business to be profitable in 3 months time and that is the correct assumption otherwise you are ready to surrender if the business does not earn in 3 months of operation.